In a significant development for the cryptocurrency market, Binance CEO Changpeng Zhao has stepped down following an agreement with the U.S. Department of Justice (DOJ). This leadership change has had an immediate impact on the market, with FTX's token, FTT, experiencing a substantial surge in value, while Binance's own token, BNB, witnessed a sharp decline.
On the day of Zhao's resignation, FTT saw its price jump by 42% to $4.26, as reported by CoinMarketCap. This rally is particularly noteworthy given FTT's limited utility but demonstrates strong institutional interest despite the token's association with FTX's past bankruptcy issues. Earlier this month, FTT had reached a year-to-date high of $4.3, suggesting a robust recovery momentum from last year's collapse and growing investor optimism about the potential launch of a new version of the trading platform.
Conversely, Binance's BNB token experienced a downturn, plummeting by 13% to $235 according to Santiment. The day before Zhao announced his departure on Twitter and took personal accountability for his actions, BNB was already under pressure with a $3.73 million liquidation in long positions and a 68% surge in options activity volume. Additionally, Bitcoin's value dropped to $36,344.38.
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